ThomasRiddleGroup

ThomasRiddleGroup

What Do Those Home Selling Terms Even Mean?

Real estate lingo can be hard to decipher because, well, there’s so much of it! It might even seem like your Realtor is speaking another language.

From fancy acronyms to words like “escrow” and “riders,” there are a lot of terms out there that might seem totally foreign. But that doesn’t mean you don’t have to know what they mean!

If you’re in the process of selling your home, here are a few real estate acronyms you really should know.

CMA: Comparative Market Analysis

Man's hand resting on the mouse pad of a silver laptop.A comparative market analysis is a great way to research the market and find out what homes in your neighborhood are selling for. It’s an in-depth report that lists the prices of sold homes that are similar to your home (otherwise known as “comps” or “comparables”).

CMAs provide information about homes that were recently sold, home that are currently on the market, and homes that were on the market but were not sold within the listing period.

FSBO: For Sale By Owner

Home sellers who opt not to use a Realtor will list their home as For Sale By Owner. This simply means the homeowner is selling their home without the help of a Realtor and is taking on all the responsibilities of selling their home.

When you choose to sell without a Realtor, you may be saving money on their commission fee, but you’re taking on a lot of additional work and responsibility. Plus, you may end up losing money in the long run if you don’t know how to stage and photograph your home, market it effectively, or price it correctly and competitively.

Escrow

Escrow refers to a number of documents, payments, and other material that are held by a third party. Once you’ve negotiated the sale of your home with a potential buyer, you’ll want to make sure there’s a proper escrow set up.

Basically, when a buyer makes an offer on your home, they’ll write you a check for “earnest money” (kind of like a security deposit or holding fee). This money is held by a neutral third party until you and the buyer negotiate a contract and close the sale.

Since you can’t use the money and neither can the buyer, the money is considered to be in “escrow”.

Contingency

When you’re negotiating the contract of your home sale with the buyer, there are likely to be a few contingencies in your contract. Contingencies protect the buyer if they fail to qualify for a loan, if they are dissatisfied with the results of the home inspection, or if something else falls through.

Carefully consider all terms of the contract, including specific contingencies, when reviewing offers. The more contingencies an offer contains, the riskier it is to accept the offer, as there are more ways it could potentially fall through. Work with your Realtor to negotiate a contract that benefits you and the buyer.

Need a Translator? We’ve Got You Covered

Allow us to handle all the details of selling your property, giving you more time to focus on finding and relocating to your new home. We’ll be there to guide you through every aspect of selling your home, from pricing it to signing the closing paperwork.

Give us a call today to get started.

Share this post

Share on facebook
Share on twitter
Share on linkedin
Share on pinterest
Share on email
Recent Posts

5 Ways to Make Your Home Feel Like Fall

Although the temps still feel like summer, fall is around the corner. We love bringing seasonal elements into our space to reflect the environment around

Get in Touch

Why Choose Thomas Riddle Real Estate Group?

Selling a house on your own can be an overwhelming task. There’s advertising to plan and budget for, open houses and private showings to arrange, purchase offers to negotiate, contract contingencies to worry about, and complicated paperwork to fill out. Make it easy on yourself by putting your home in the hands of seasoned professionals. We have extensive experience marketing properties and showing them to their best advantage.

Compare listings

Compare

Get Your Home's Accurate Value

Receive a No-Obligation Market Evaluation from our Listing Experts Rob Riddle, Tony Thomas, & Kate Thomas

Note: Please be assured we will use this information only to send you the information you have requested and we will never share or rent your contact information with any other party. By giving us your name and email address, you are giving Thomas|Riddle Real Estate Group permission to contact you.